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Judgment
This assessee’s appeal for assessment year 2020-21, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and Order no. ITBA/NFAC/S/250/2026-27/1088408296(1), dated 11.04.2026 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
Coming to the first and foremost legal issue herein, it emerges during the course of hearing that the learned assessing authority had set into motion section 148/147 proceedings alleging cash withdrawals amounting to Rs.29,55,66,000/- in the assessee’s case wherein the impugned assessment framed on 06.02.2025 ended in making addition of Rs.19,76,824/- u/s 40A(3), which never formed part of the foregoing reopening reasons.
I hereby conclude in light of this clinching factual position and as per ATS Infrastructure Ltd. Vs. ACIT (2024) 166 taxman.com 61 (Delhi), Ranbaxy Laboratory CIT (2011) 335 ITR 136 (Del), PCIT v. Jakhotia Plastics (P.) Ltd. (2018) 94 taxmann.com 89 (Delhi), CIT Vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom.) and CIT(E) Vs. BP Poddar Foundations for Education (2023) 148 taxmann.com 125 (Cal) to hold that the impugned reopening is not itself sustainable once the learned Assessing Officer had nowhere made any addition in the assessee’s hands going by the foregoing sole reason recorded herein.
All other remaining pleadings between the parties stand rendered academic.
This assessee’s appeal is allowed.